Labat Africa : General Issue of Shares for Cash

LABAT AFRICA LIMITED

Incorporated in the Republic of South Africa

(Registration number 1986/001616/06)

JSE code: LAB ISIN: ZAE000018354

("Labat" or "the Company" or "the Group")

LEI 9845000R73DF5EE41J88

GENERAL ISSUE OF SHARES FOR CASH

In terms of paragraph 11.22 of the JSE Listings Requirements, shareholders are hereby advised that Labat Africa has issued 21 385 680 new shares under its General Authority to issue shares for cash, which was approved by shareholders on 11 May 2021. The Company has issued 81 406 046 new shares from the date of the approval of the General Authority representing a cumulative of 20.75% of the issued share capital of the Company from the date of approval of the general authority.

The new issue of 21 385 680 shares represents 5.45% thereof. The shares were issued over a period of three months at prices ranging from 21 cents to 34 cents per share, being a premium to the 30-day volume weighted average price at the date of board approval for the issue of shares for cash.

The funds received are being applied to the expansion of the cannabis healthcare business and working capital.

The shares issued rank pari passu with existing listed Labat Africa ordinary shares. Following the issue of the shares, the total issued and listed share capital of Labat Africa has increased to 529 206 996 ordinary shares.

Johannesburg

15 March 2022

Sponsor

AcaciaCap Advisors Proprietary Limited